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Categorical data (or variable) consists of names representing categories. For example, the gender (categories of male & female) of the people where you work or go to school; or the make of cars in the parking lot (categories of Ford, GM, Toyota, Mazda, KIA, etc) is categorical data. Numerical data (or variable) consists of numbers that represent counts or measurements. For example, the number of males & females where you work or go to school; or the number of the make of cars Ford, GM, Toyota, Mazda, KIA, etc is numerical data.

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Q: What is the difference between a categorical and a numerical variable?
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